Namib Mills and the Namibia Revolutionary Transport and Manufacturing Union (NARETU) have confirmed the details of a wage settlement for the 2025/2026 financial year, a day after the parties announced the end of the prolonged labour dispute that disrupted operations at one of the country's largest food producers.

In a media release on Wednesday, Namib Mills said the agreement covers 1 July 2025 to 30 June 2026 and allows the employer lock-out to be lifted, enabling workers to return and operations to stabilise.

Namib Mills said the final deal reflects the framework presented to workers and the union in November 2025, based on industry benchmarks and business sustainability.

Meanwhile, NARETU provided further details on the outcome during an official press briefing held on Thursday, explaining that the agreement will be implemented in two phases covering the 2025/2026 and 2026/2027 financial years, with wage adjustments aligned across both periods.

On top of the successful wage negotiations, Kambinda also highlighted the abolition of a disciplinary measure previously used by Namib Mills, describing it as a significant victory for employees.

"If an employee who works for Namib Mills receives a verbal warning, it constitutes 15%. So you receive your bonus, but from that bonus, if you receive a warning, they deduct 15%. If you happen to receive a written warning, they deduct 25%. If you happen to receive a final written warning, you lose 50% of your bonus, of which now, after this, it had all those disciplinary actions coupled to the bonus; it had now been successfully abolished that when a person, when you have performed and the company has evaluated that, yes, this is what you are going to receive, then you will be able to receive that bonus."

For the 2026/2027 financial year, employees will receive a 5% salary increase, while the transport allowance will rise to N$300 from N$200. The minimum entry-level salary remains at N$4 100.

NARETU said the benefits are included in the signed agreement and will take effect from 1 July.
Other improvements include higher medical aid contributions, increased night-out allowances for drivers, and salary alignment within job grades.